PR helping SME’s stand out from the crowd 8/08/2008

Smaller companies are becoming big business in the UK, standing out against popular multi-national companies. At the beginning of 2006 there were an estimated 4.5million SME’s (small and medium enterprises) in the UK, an increase of 3% from the previous year. In the same year, SME’s accounted for 59% of UK employment and 52% of the UK’s annual turnover.

What makes SME’s stand out in the increasingly competitive UK market? As they don’t have the budget for costly marketing and advertising campaigns, an SME relies heavily on the “personality and ethos” of their brand to attract the consumer. A small company can provide a more personal service than a big brand, making the customer feel important and valued.

With a low budget, a nationwide advertising campaign will no doubt be out of the question for a new small company. Therefore many SME’s use PR (public relations) as its “main form of communication” to build brand awareness. PR is a cost-effective way for an SME to target both local and national press. Most SME’s start promoting locally first, to build up a customer base within their local community. This is crucial as according to the FSB (Federation of Small Businesses), “most small businesses are located within 50 miles of their customer base” (Jardine, Marketing, p27).

In using PR SME’s can target a particular market, which can be defined by various demographics, by anything from age to class or location. It can also be used to target specific trade press, dependent on the brand and the products being marketed. However the press isn’t the only medium used by PR companies to promote SME’s.

For a small company, creating a well written and easy to navigate website is vital to promoting their brand. In doing this “small brands can completely outmanoeuvre their much larger and painfully predictable competitors” (Jardine, Marketing, p27). The Internet can be used as a medium to increase awareness of their brand in other ways too, for example in using email marketing or Adwords (advertising on Google). The advantages of using the Internet to promote an SME are that it is quick and easy to do and the costs are relatively low.

Well-designed packaging is equally as important in creating brand awareness of any company. Big companies who are part of a large organisation are restricted by design rules, whereas SME’s may be able to create much more distinctive and creative designs. The packaging for a small company’s product must be eye-catching to attract the consumer to choose it over a better-known brand.

There are many advantages to being an SME but it’s not all plain sailing. With the economic slowdown the consumer is starting to purchase less, concentrating more on buying essential items for the family. UK consumers are looking for value added products and services, so SME’s have to compete with the big brands that can afford to cut prices. With the consumer spending less the credit-crunch is inevitably going to hit smaller companies. On the plus side, SME’s can meet their customer’s needs in a more personal way than “a big faceless corporation”, and with smaller overheads, SME’s will be used to cost-cutting (Jardine, Marketing, p28).

Clearsilver have worked with a variety of SME’s, helping them to grow by increasing their brand awareness. Recently Clearsilver have been working with Create, a Leeds based Community Interest Company which helps previously homeless people find employment. Clearsilver have created a unique and distinctive brand image for Create using a variety of mediums, from direct mail to e-commerce.

Another SME who has worked with Clearsilver is Bleiker’s, which is an award-winning Yorkshire Smokehouse. Clearsilver targeted the national press, including the Sunday Times Style Magazine and online to increase the awareness of Bleiker’s and smoked salmon.

Main Source: Marketing, 16th July 2008

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